Absolute Electronics Ltd. and all trading divisions including Absolute Supply Chain

STANDARD TERMS AND CONDITIONS OF PURCHASE FOR SUPPLY OF GOODS AND SERVICES TO OUR BUSINESS



1 DEFINITIONS

In this document the following words shall have the following meanings:

1.1 "Agreement" means these Terms and Conditions together with the terms of any applicable Specification Document;

1.2 "Customer" means the organisation or person who purchases goods and/or services from the Supplier;

1.3 "Intellectual Property Rights" means all patents, registered and unregistered designs, copyright, trade marks, know-how and all other forms of intellectual property wherever in the world enforceable;

1.4 "Specification Document" means a statement of work, quotation or other similar document describing the goods and services to be provided by the Supplier;

1.5 "Supplier" means Absolute Electronics Ltd. and all trading divisions including Absolute Supply Chain both of 131 Feltham Road, Ashford, Middlesex, TW15 1AB, United Kingdom.

2 GENERAL

2.1 These Terms and Conditions shall apply to all contracts for the supply of goods and services by the Supplier to the Customer.

2.2 Before the commencement of the services the Supplier may at it's discretion submit to the Customer a Specification Document which shall specify the goods and services to be supplied and the price payable. The Customer shall notify the Supplier immediately if the Customer does not agree with the contents of the Specification Document. All Specification Documents shall be subject to these Terms and Conditions. Where the Supplier does not issue a Specification Document but receives a purchase order or contract or an invitation to supply or quote from the Customer then such documents will be treated as a Specification Document and will be subject to these Terms and Conditions and any Terms and Conditions of the Customers referenced in such or any subsequent documents shall not apply.

2.3 The Supplier shall use all reasonable endeavours to complete the services or supply product within estimated time frames but time shall not be of the essence in the performance of any services or products supplied.


3 PRICE, PAYMENT AND SHIPPING TERMS

3.1 The price, payment and shipping terms for the supply of goods and services are as set out in the Specification Document. Where no Specification Document exists or such terms are not stated in the Specification Document then The Supplier shall invoice the Customer on a Pro-Forma (cash due in cleared funds in advance of goods being shipped or collected) and Ex Works (Incoterms 2000) basis. The place of delivery for Ex Works contracts may not be limited to the United Kingdom as the Supplier may provide the goods or services from any geographic location.

3.2 Invoiced amounts shall be due and payable in Great British Pounds Sterling. The Supplier shall be entitled to charge interest on overdue invoices from the date when payment becomes due from day to day until the date of payment at a rate of 3 percent per annum above the base rate of the Bank of England and shall additionally apply a reasonable service charge to cover true costs of progressing and recovering the debt. In the event that the Customer's procedures require that an invoice be submitted against a purchase order to payment, the Customer shall be responsible for issuing such purchase order before the goods and services are supplied.

4 SPECIFICATION OF THE GOODS

All goods shall be required only to conform to the specification in the Specification Document or if agreed in writing by the Supplier to the specification in the Customers purchase order. For the avoidance of doubt no description, specification or illustration contained in any product pamphlet or other sales or marketing literature of the Supplier or Customer and no representation written or oral, correspondence or statement shall form part of the contract.

5 DELIVERY DATE AND TIME
5.1 The date of delivery specified by the Supplier is an estimate only. Time for delivery shall not be of the essence of the contract and the Supplier shall not be liable for any loss, costs, damages, charges or expenses caused directly or indirectly by any delay in the delivery of the goods.
5.2 All risk in the goods shall pass to the Customer upon delivery.

6 TITLE

Title in the Goods shall not pass to the Customer until the Supplier has been paid in full for the Goods.

7 CUSTOMER`S OBLIGATIONS

7.1 To enable the Supplier to perform its obligations under this Agreement the Customer shall:

7.1.1 co-operate with the Supplier;

7.1.2 provide the Supplier with, where applicable, free issue material and any information reasonably required by the Supplier;

7.1.3 obtain all necessary permissions and consents which may be required before the commencement of the services or supply of product; and

7.1.4 comply with such other requirements as may be set out in the Specification Document or otherwise agreed between the parties.

7.2 The Customer shall be liable to compensate the Supplier for any expenses incurred by the Supplier as a result of the Customer's failure to comply with Clause 7.1.

7.3 Without prejudice to any other rights to which the Supplier may be entitled, in the event that the Customer unlawfully terminates or cancels the goods and services agreed to in the Specification Document or customers purchase order, the Customer shall be required to pay to the Supplier as agreed damages and not as a penalty the full amount of any third party costs to which the Supplier has committed and in respect of cancellations on less than ten working days' written notice the full amount of the goods and services contracted for as set out in the Specification Document or customer purchase order, and the Customer agrees this is a genuine pre-estimate of the Supplier's losses in such a case. For the avoidance of doubt, the Customer's failure to comply with any obligations under Clause 7.1 shall be deemed to be a cancellation of the goods and services and subject to the payment of the damages set out in this Clause.

7.4 In the event that the Customer or any third party, not being a sub-contractor of the Supplier, shall omit or commit anything which prevents or delays the Supplier from undertaking or complying with any of its obligations under this Agreement, then the Supplier shall notify the Customer as soon as possible and:

7.4.1 the Supplier shall have no liability in respect of any delay to the completion of any project;

7.4.2 if applicable, the timetable for the project will be modified accordingly;

7.4.3 the Supplier shall notify the Customer at the same time if it intends to make any claim for additional costs.

8 ALTERATIONS TO THE SPECIFICATION DOCUMENT OR PURCHASE ORDER

8.1 The parties may at any time mutually agree upon and execute new written Specification Documents or an amendment to the Customers purchase order. Any alterations in the scope of goods and/or services to be provided under this Agreement shall be set out in the Specification Document or the Customers purchase order, which shall reflect the changed goods and/or services and price and any other terms agreed between the parties.

8.2 The Customer may at any time request alterations to the Specification Document or their purchase order by notice in writing to the Supplier. On receipt of the request for alterations the Supplier shall, within 5 working days or such other period as may be agreed between the parties, advise the Customer by notice in writing of the effect of such alterations, if any, on the price and any other terms already agreed between the parties.

8.3 Where the Supplier gives written notice to the Customer agreeing to perform any alterations on terms different to those already agreed between the parties, the Customer shall, within 5 working days of receipt of such notice or such other period as may be agreed between the parties, advise the Supplier by notice in writing whether or not it wishes the alterations to proceed.

8.4 Where the Supplier gives written notice to the Customer agreeing to perform alterations on terms different to those already agreed between the parties, and the Customer confirms in writing that it wishes the alterations to proceed on those terms, the Specification Document and the Customers purchase order shall be amended to reflect such alterations and thereafter the Supplier shall perform this Agreement upon the basis of such amended terms subject to all such amendments and alterations being approved and validated in writing by an authorised signatory of The Supplier before they become binding.

9 WARRANTY AND RETURNS

9.1 The Supplier warrants that if any product manufactured by The Supplier is defective, it will replace or repair the product or refund the purchase price. This warranty is subject to a claim being made in writing to The Supplier within 12 months of the original date of despatch and within 7 days of the defect occuring, or such other longer period as may be indicated by The Supplier for specific products from time to time in writing.
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9.2 The Supplier warrants that if any product distributed but not manufactured by The Supplier is defective, it will extend the benefit of any warranty received from and provided by the original manufacturer subject to section 11 of this Agreement or at it's discretion replace or repair the product or refund the purchase price. This warranty is subject to a claim being made in writing to The Supplier within 6 months of the original date of despatch and within 7 days of the defect occuring, or such other longer period as may be indicated by The Supplier for specific products from time to time in writing.

9.3 The Supplier warrants that the services performed under this Agreement shall be performed using reasonable skill and care, and of a quality conforming to generally accepted industry standards and practices

9.4 Except as expressly stated in this Agreement, all warranties whether express or implied, by operation of law or otherwise, are hereby excluded in relation to the goods and services to be provided by the Supplier

9.5 The Customer must contact The Supplier prior to the return of any defective product to notify The Supplier of their intended warranty claim or return and obtain a returns number, which is to be quoted on all paperwork. Returned products or parts must be accompanied by an advice note stating the original invoice number in respect of the products and the nature of any claimed defect, together with such further information as The Supplier may at the time of supply have stipulated. Where the Customer returns products otherwise than in accordance with these warranty provisions, The Supplier may refuse such products and return them to the Customer at the cost of the Customer.

10 INDEMNIFICATION

The Customer shall indemnify the Supplier against all claims, costs and expenses which the Supplier may incur and which arise, directly or indirectly, from the Customer's breach of any of its obligations under this Agreement, including any claims brought against the Supplier alleging that any goods and/or services provided by the Supplier in accordance with the Specification Document or Customers purchase order infringes a patent, copyright or trade secret or other similar right of a third party.

11 LIMITATION OF LIABILITY

11.1 Except in respect of death or personal injury due to negligence for which no limit applies, the entire liability of the Supplier to the Customer in respect of any claim whatsoever or breach of this Agreement, whether or not arising out of negligence, shall be limited to the price paid by the Customer to which the claim relates.

11.2 In no event shall the Supplier be liable to the Customer for any loss of business, loss of opportunity or loss of profits or for any other indirect or consequential loss or damage whatsoever. This shall apply even where such a loss was reasonably foreseeable or the Supplier had been made aware of the possibility of the Customer incurring such a loss.

11.3 Nothing in these Terms and Conditions shall exclude or limit the Supplier's liability for death or personal injury resulting from the Supplier's negligence.

12 TERMINATION

Either party may terminate this Agreement forthwith by notice in writing to the other if:

12.1 the other party commits a material breach of this Agreement and, in the case of a breach capable of being remedied, fails to remedy it within 30 calendar days of being given written notice from the other party to do so;

12.2 the other party commits a material breach of this Agreement which cannot be remedied under any circumstances;

12.3 the other party passes a resolution for winding up (other than for the purpose of solvent amalgamation or reconstruction), or a court of competent jurisdiction makes an order to that effect;

12.4 the other party ceases to carry on its business or substantially the whole of its business; or

12.5 the other party is declared insolvent, or convenes a meeting of or makes or proposes to make any arrangement or composition with its creditors; or a liquidator, receiver, administrative receiver, manager, trustee or similar officer is appointed over any of its assets.

13 INTELLECTUAL PROPERTY RIGHTS

All Intellectual Property Rights produced from or arising as a result of the performance of this Agreement shall, so far as not already vested, become the absolute property of the Supplier, and the Customer shall do all that is reasonably necessary to ensure that such rights vest in the Supplier by the execution of appropriate instruments or the making of agreements with third parties.

14 FORCE MAJEURE

Neither party shall be liable for any delay or failure to perform any of its obligations if the delay or failure results from events or circumstances outside its reasonable control, including but not limited to acts of God, strikes, lock outs, accidents, war, fire, the act or omission of government, highway authorities or any telecommunications carrier, operator or administration or other competent authority, or the delay or failure in manufacture, production, or supply by third parties of equipment, material or services, and the party shall be entitled to a reasonable extension of its obligations after notifying the other party of the nature and extent of such events.

15 INDEPENDENT CONTRACTORS

The Supplier and the Customer are contractors independent of each other, and neither has the authority to bind the other to any third party or act in any way as the representative of the other, unless otherwise expressly agreed to in writing by both parties. The Supplier may, in addition to its own employees, engage sub-contractors to provide all or part of the services being provided to the Customer and such engagement shall not relieve the Supplier of its obligations under this Agreement or any applicable Specification Document.

16 ASSIGNMENT

The Customer shall not be entitled to assign its rights or obligations or delegate its duties under this Agreement without the prior written consent of the Supplier.

17 SEVERABILITY

If any provision of this Agreement is held invalid, illegal or unenforceable for any reason by any Court of competent jurisdiction such provision shall be severed and the remainder of the provisions herein shall continue in full force and effect as if this Agreement had been agreed with the invalid illegal or unenforceable provision eliminated.

18 WAIVER

The failure by either party to enforce at any time or for any period any one or more of the Terms and Conditions herein shall not be a waiver of them or of the right at any time subsequently to enforce all Terms and Conditions of this Agreement.

19 NOTICES

Any notice to be given by either party to the other may be served by email, fax, personal service or by post to the address of the other party given in the Specification Document or Customers purchase order, and if sent by email shall unless the contrary is proved be deemed to be received on the day it was sent, if sent by fax shall be deemed to be served on receipt of an error free transmission report, if given by letter shall be deemed to have been served at the time at which the letter was delivered personally and an acknowledgement of receipt received or if sent by post shall be deemed to have been delivered in the ordinary course of post subject to proof of posting or delivery being obtained.

20 ENTIRE AGREEMENT

This Agreement contains the entire agreement between the parties relating to the subject matter and supersedes any previous agreements, arrangements, undertakings or proposals, oral or written. Unless expressly provided elsewhere in this Agreement, this Agreement may be varied only by a document signed by both parties.

21 NO THIRD PARTIES

Nothing in this Agreement is intended to, nor shall it confer any rights on a third party.

22 GOVERNING LAW AND JURISDICTION

This Agreement shall be governed by and construed in accordance with the law of England and the parties hereby submit to the exclusive jurisdiction of the English courts.